PHARMA FRANCHISE COMPANIES
When a company grants an individual or entity authorization to conduct commercial activities on its behalf, it is called franchising. Companies are willing to grant this authorization because it provides a
convenient, cheaper and cost-effective way of promoting, marketing and distributing their brand. Pharmaceutical companies are not exception.
Pharmaceutical companies often grant authorization to individuals, professionals, distributors or groups that allow them to control over their trademarks and products. The entity that is granted this
authorization is commonly referred to as a Pharma Franchise or a PCD (Propaganda cum Distribution Franchise).
There are some benefits of the Pharma Franchise industry, to both business owners and Pharmaceutical companies that have made it gain popularity over the years:
– Low Administrative Costs:
For a Pharma Franchise, limited staff is required. All the marketing and distribution can be handled by two or three individuals and can be done from one single location, even if the target market is the entire country.
– Low Investment Capital:
To start Pharma Franchise companies, you will be relying on your own work, your connections and relationships with doctors and professionals in the medical field, to establish your business. This means that you will be saving a substantial amount of capital for the initial startup.
– Large Profits:
Pharm Franchising results in big profits for both the Pharma Franchise and the Pharmaceutical Company itself. Because of the increased scale of marketing and distribution, not only does the Pharma Franchise business benefit from a handsome commission or income, the company enjoys an increase in revenue.
-Low Risk Factor:
Because establishing Pharma Franchise Companies is not capital intensive, there is minimal risk factor and is a great opportunity for an entrepreneur who wishes to start their own company but has little investment capital
Being the authorized agent of the Pharmaceutical company, you can enjoy full monopoly over the brand and products in the area you are targeting. You get to decide how to market and distribute the medicines and pharmaceutical products at your discretion. Like every business, there are advantages and also shortcomings:
– Restriction on Suppliers:
Even if you as the Pharma Franchisee have connections to good and reliable suppliers, you are not at liberty to obtain supply from them and you are bound by the agreement between the Pharmaceutical company and its suppliers and vendors. This limits your flexibility a little.
– External Risks from other Franchisees:
Remember that you are not the only Pharma Franchisee in the area and that there is a whole network of Franchisees. Your reputation will be bound to this network such that if one Franchisee manages to
tarnish your name, not only will your reputation in the industry be affected but the brand of the Pharmaceutical company that you are representing will also be affected.
If you are thinking of staring your own Pharma Franchise, be sure to comply with all the requirements and remember that you are not only here to make money but you are also a Company’s brand ambassador. If you are a Pharmaceutical company looking for a cost effective, stress free and profitable way to market and distribute your merchandise, then a good Pharm Franchise
might just be the solution for you.